I think you’ll find there will be plenty of investors willing to...

I think you’ll find there will be plenty of investors willing to throw good money after bad if the cap raise is so heavily discounted. If you were one of the unfortunates who jumped on based on the J-curve graphs and marketing spin in the $3 or $4 days, you’d probably double down on $0.05 raise. The key to the raise will be what they do to reassure investors they have cleaned house, which should include more than Steve because the other founders and leadership must have had knowledge of the financial mismanagement.
They have known for a couple of weeks the $26M was inaccessible and certainly not available for the immediate term. If that was the only issue (albeit a massive one) then the half-yearly audit report should have been published by now. Would this not indicate there were further discrepancies in the financials beyond that of the missing millions?
As a result of not being able to access the $26M fund, the heavily discounted cap raise was always needed because everything points to DUB trading while insolvent, hence the need for a $5M bridging loan to keep lights on and pay bills as of today. The $20M cap raise is needed to continue operations from tomorrow and in the short term. If they don’t secure the funds, they are gonesky.
Why is everyone saying that if DUB fail the company gets handed over to AW? My assumption was he has only secured his bridging loan with conditions that if they were not met, he would be able recoup his loan money from the company, rather than by default owning the company. What did I miss?
I would be hard to believe the other founders and possibly a director or two were not aware of the dodgy financial swindling going on. Surely as part of financial governance if $30M was required to be held in term deposit under trust it would take more than the CEO and the trust administrator to realise and move the funds. I would have thought you’d need multiple signatures of authority within a company to do this. Time will soon tell.
How on earth anyone didn’t pick up on the missing interest payments as income on $30M still beggars’ belief, what on earth are the COO, CFO and Board doing for all their regular annual cycle of freebie ZEPO’s, farcical bonuses and incentive payments, excessive salaries and ridiculous junket expenses accounts. All the while spending $19M to make $9M per quarter as they have done for the last year.
You would have to expect a few customers to jump ship now, as it’s been too hard and too many issues with these DUB guys, suspended twice in 18 months for financial funny business, CEO stealing $26M, all points to a whole company that you simply cannot trust. They have been lying in their quarterlies for years and finally someone looked.